Power, bank stocks flare up; Sensex up 461 pts

Equities rise on nuke deal, Freddie, Fannie bailout

Indian shares on Monday got a boost from the NSG waiver to India-US nuclear deal and rally in Asian and European markets on take over of US mortgage giants Fannie May and Freddie Mac by US government. Market opened with a gap-up mirroring a strong rally in Asian peers. Investors covered shorts and took fresh positions in capital goods, power and banking stocks. But the indices lost momentum towards end of trade as profit booking set in.

Bombay Stock Exchange’s Sensex closed at 14,944.97, up 461.14 points or 3.18 per cent. The index touched a high of 15,107.01 and low of 14,917.06 intraday. National Stock Exchange’s Nifty ended at 4,482.30, up 130 points or 2.99 per cent from Friday. The broader index touched a high of 4,558 and low of 4,358.30 during the day.

BSE Midcap Index closed 1.15 per cent higher at 5819.89 and BSE Smallcap Index advanced 1.12 per cent to 6,982.77. Sterlite Industries (5.88%), ICICI Bank (4.89%), State Bank of India (4.81%), Larsen & Toubro (4.63%) and NTPC (4.58%) were the biggest Sensex gainers. There were no losers in the 30-share index. Analysts don’t expect the market rally to sustain as there are no visible positive triggers to drive the market.

“What happened today was on expected lines. Two events--NSG waiver and bailout of American banks--changed market sentiments. But market will be range-bound from here on and may face pressure 300-400 points on the upside,” said Subramanyam Pisupathi, head of research, Ventura Securities. Subramanyam is of the view that rate sensitive banking sector may move higher from current levels as factors like inflation and interest rates are close to peaking. The BSE Bankex closed 4.06 per cent higher at 7,464.24.

“Banking sector looks promising at these levels as inflation looks peaked out and interest rates may be one step from peaking out. Yield on government paper has come down from 9.15 per cent or thereabouts to 8.5 per cent and that is a good sign. We expect less provisioning in second quarter and may see investments even at these levels,” he added. According to him, euphoria in power stocks is over-stretched and investors may book profits now as fundamentals of these companies won’t be changing so soon.

BSE Capital Goods Index and BSE Power Index, which led the gains in morning, ended 3.70 per cent and 3.36 per cent higher but off highs. In stock specific action, KEC International ended up 4.11 per cent at Rs 424.10 after bagging two orders worth Rs 120 crore from NTPC Electric Supply Company and Rs 97 crore from Power Grid Corporation of India. Shares of Tata Communications ended up 5.37 per cent at Rs 447.40 after the company and BitGravity, a next-generation content delivery network for interactive broadcasting, reported the worldwide launch of Tata Communications’ CDN service..

Dolphin Offshore shares were locked at 20 per cent upper circuit at Rs 281.15 after it won two contracts worth Rs 304 crore from ONGC. Shares of Suzlon Energy gained 4.59 per cent to Rs 235.80 after the company completed 51 MW wind power project for ONGC. Bilpower ended up 3.14 per cent at Rs 170.75 after it signed $30 million contract with the Ghana government for EPC contract for rural electrification. On the BSE, advances numbered 1,665 and declines 1,034. European markets were higher but FTSE 100 had given away some intra-day gains at the time Indian market closed. It was up 1.46 per cent, CAC 40 was up 4.94 per cent and DAX moved 3.57 per cent higher.

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Source:ET

Sensex ends 99 pts down; Oil, power

Sensex ends 99 pts down; Oil, power
Sensex ends down nearly 100pts, RIL

NSE
6206.80 6.70
BSE
20728.05 -99.40

After a fairly positive start, the benchmark indices Sensex and Nifty slipped into the red in a flash as several blue chip stocks, led by information technology majors, wilted under a strong bout of selling pressure.
Though the Nifty spent a better part of the next four hours in the positive territory thanks to a firm trend displayed by some of its components, the Sensex remained quite choppy and kept moving in and out of the positive territory with participants choosing every small rise as an opportunity to lighten commitments.
Though both the premier indices plunged sharply into the red with an hour to go for the closing bell, the Nifty managed to bounce back thanks to some hectic buying in some of its non-Sensex components.
While the Nifty ended the day at 6206.80 with a marginal gain of 6.70 points, the Sensex settled at 20,728.05, down 99.40 points or 0.48% from its previous closing mark. In intra-day trades today, the Sensex, which had opened with a positive gap at 20,918.23 and spurted to 20,985.62 in early trade, hit a low of 20,661.90. The Nifty touched a high of 6244.15 and a low of 6172 today.
Oil, power, realty, bank and PSU stocks were in demand today. Information technology stocks traded weak and mirroring the sharp losses posted by key stocks in that space, the BSE IT slipped by as much as 2.85% from its previous closing mark. Buying remained selective in FMCG, auto, capital goods, metal and pharma sectors.
Mid and smallcap stocks, which had taken a hammering last week, bounced back into the reckoning today. Reflecting investor interest for these stocks, the BSE Midcap and Smallcap indices moved up by 1.04% and 1.33% respectively.
Power stock NTPC, which remained quite subdued for a better part of the session, rallied smartly during the closing minutes and ended with a handsome gain of 4.65%. Heavyweight stock Reliance Industries (up 2.85%) ruled firm right through the session.
BHEL moved up by 1.6%. Reliance Communications, HDFC Bank, State Bank fo India, Ranbaxy Laboratories, ITC and DLF also closed with sharp gains. Tata Motors and Cipla gained marginal ground.
Bharti Airtel, which eased by a little over 6% to Rs 907.30, was the biggest loser in the Sensex. Wipro ended lower by 5%. Maruti Suzuki lost 4.85%. Infosys Technologies finished with a loss of 3.15%.
Tata Consultancy Services, Satyam Computer Services, HDFC, Mahindra & Mahindra, ACC, Bajaj Auto, ICICI Bank and Hindustan Unilever lost between 2% - 3%. Grasim Industries, Tata Steel, ONGC, Ambuja Cements and Reliance Energy also closed with sharp losses. Larsen & Toubro and Hindalco ended with small losses.
BPCL (7.5%), Hero Honda (6.6%), Tata Power (5.1%), Idea Cellular (4.4%) and Reliance Petroleum (2.35%) served Nifty's cause today.
Punjab National Bank, GlaxoSmithKline Pharma, Unitech and Cairn India were the other prominent gainers from the Nifty fold. GAIL India, Suzlon Energy and Zee Entertainment chipped in with modest gains.
Sun Pharmaceuticals, Nalco, HCL Technologies, Dr. Reddy's Laboratories, Siemens and SAIL ended with sharp losses.
Apollo Tyres, Shipping Corporation of India, Hinduja Ventures, Axis Bank, Indian Bank, Exide Industries (Indian Bank and Exide Industries rose smartly on buoyant quarterly numbers), BPCL, Jindal Steel, Welspun Gujarat, Gujarat Narmada, Alok Industries, Gujarat Industries & Power, Arvind Mills, BASF India, Neyveli Lignite Corporation, Bank of Baroda and Indian Hotels posted impressive gains.
Reliance Natural Resources gained 7.2% on strong volumes. Jaiprakash Associates moved up by 5.55% on sustained buying on the back of a good show by the company in the October-December 2007 quarter.
The market breadth was marginally positive today. Out of 2881 stocks traded on BSE, 1576 stocks closed with gains. 1283 stocks finished in the negative territory and 22 stocks ended at their previous closing levels.

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